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Broad-Based Black Economic Empowerment Act, 2003 (Act No. 53 of 2003)

Amended Codes of Good Practice (2017)

Amended Code Series CSC100: Measurement of the Ownership Element of Broad-Based Black Economic Empowerment in the Construction Sector

Statement CSC100: The General Principles for Measuring Ownership

3. Key Measurement Principles

3.7 Mandated Investments


3.7.1 When determining Ownership in a Measured Entity, rights of Ownership of Mandated Investments may be excluded.


3.7.2 The maximum percentage of the Ownership of any Measured Entity that may be so excluded is 40%.


3.7.3 A Measured Entity electing not to exclude Mandated Investments when it is entitled to do so, may either treat all that Ownership as non-Black or obtain a competent person’s report estimating the extent of Black Rights of Ownership measurable in the Measured Entity and originating from those Mandated Investments.


3.7.4 A Measured Entity cannot selectively include or exclude Mandated Investments and therefore an election to exclude one Mandated Investment is an election to exclude all Mandated Investments and vice versa.


3.7.5 A Measured Entity applying the Exclusion Principle to Mandated Investments cannot benefit from the Modified Flow-Through Principle.